The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-07


retired, and there are no bonds outstand-
Ing the payment OF which we have the
right to insist upon. The contribution to
the sinking fund, which furnishes the oc-
casion Tor expenditure in the purchase of
bonds, has been already made for the cur
rent year, so that there is no outlet in that
direction. In the present state OF legisla-
ton the only pretcnse Of any existing ex-
ecutive power to restore, at this time, any
part OF our surplus revenues to the people
by It's expenditure, consists in the suppo-
sillon that the Secretary OF the Treasury
may enter the market and purchase the
bonds OF the government not yet due, at n
rate OF premium to be agreed upon.
THE ONLY PROVISION OF LAW
from which such a power could be derived
Is found in an appropriation bill passed a
number of years ago. and it is subject TO
the suspicion that it was intended rs tenn,
porary and limited in its application, in
stead OF comforting continuing discretion
and authority. No condition ought to ex-
Isl which would justify the grant Of power
To q single official, upon his Judgment Of
its necessity, TO withhold from or release
to the business OF the people. in an unusual
manner money held in the treasury, and
thus affect at his will, the financial situa-
ton of the country; and II ii is deemed
wise to lodge in the Secretary OF the Treas
ury the authority in the present juncture
to purchase bonds, il should be plainly
vested, and provided, as far us possible,
with such checks and limitations rs will
define this officials right and discretion,
and at the same time relieve him from
undue responsibility. In considering the
question of purchasing bonds as means
OF rcstoring TO circulation the surplus money
accumulating in the treasury, il should be
borne in mind that premiums must of
course be paid upon such purchase, that
there may be a large part of these bonds
held ms investments which cannot he pur-
chased at any price, and that combinations
among holders who are willing TO sell may
unreasonably enhance the cost OF such
bonds to the government.
IL has been suggested that the present
bonded debt might be refunded at u less
rate Of interest, and the difference between
the old and new security paid in cash, thus
finding use for the surplus in the treasury.
The success of this plan, ii is apparent,
must depend upon the voltion OF
the holders of the present bonds; and
il is not entirely certain that the induce
mcnt which must be offered them would
result in more financial benefit 10 the gov
eminent than the purchase Of bonds,
while the latter proposition would reduce
the principal Of the debt by actual pay
ment instead OF extending it.
The proposition to deposit the money
held by the government in banks through
out the country for the use OF the people,
is, il seems to me, exceedingly objecti0na-
bic in principle, rs establishing too close n
relationship between the operations Of the
government treasury and the business OF
the country, aud too extensive com.
mingling OF their money, thus
FOSTERING An UNNATURAL RELIANCE
in private business upon public funds. Ii
this scheme should bc adopted il should
only he done as temporary eXpcdicnt 10
meet an urgent necessity. Legislative and
executive efforts should generally be in
the opposite direction, and should have
tendency 10 divorce, ms much and as fast
as tan safely be done, the treasury depart
mcnt from private enterprise. OF course
II Is not expected that unnecessary and
eXtravagant appropriations will be made
for the purpose OF avoiding the accumula-
ton OF an excess OF revenue. Such eN-
Just conceptions OF public duty which IL
entails, stimulates i,abit Of reckless inn
providence not In the least consistent with
the mission of our people or the high and
berciicent purposes Of our government.
have deemed II my duty 10 thus bring
TO the knowledge OF my countrymcn, az
well rs 10 the attention OF Their representa-
tivcs charged with the responsibility Of
legislative relief, the gravity OF our financial
situation. The failure Of Congress hereto
fore 10 provide against the dangers which
II was quite evident the very nature Of the
difficulty must necessarily produce caused
o condition OF financial distress and appre-
hension since your last adjournment which
taxed TO the utmost all the authority and
oxpcdients within executive control: and
these appear now 10 be exhausted. II
! disaster results from the continued inaction
Of Congress, the responsibility must rest
where Il belongs
Though the situation thus Ear considered
is fmught with danger which should be
fully Ualizcd, and though Il presents feat
urcs Of wrong TO the people, M well M
/ peril 90 the country. Il Is but u result grow
ing ont Of a perfectly palpablc and apparent
cause, constantly reproducing the same
alarming circumstances cOngcsicd ma
iiona treasury aud depleted monetary
| condition in the business of the country.
[ II need hardly be stated that while the
/ present situation demands remedy, We
can only be- saved from like predicamcnt
| IN the future by the removal OF It's cause.
ora scHEuE OF TAXATION,
| by means Of which this needless surplus i
taken from the people and put into the pub
| lir treasury, consists Of iariiior duty levied
upon impOrtntions from abroad ahd inter
I nal revenue taxes levied upon the con-
| sumption IT tobacco and spiriiuous aud
malt liquors II must be conceded that
none Of the things subjected 10 internal
I revenue tdNatiOn arr, strictly speaking
| ncccs-arics; there appears 10 bc No Just
complaint Of this taxation by the con-
Wmcts 81 these articles. aud there seems
/ 10 bc nothing 10 we'll able 10 bear the bur
den without hardship 10 any portion Of
| the people.
Bnt our present tariff laws. the vicious,
inequitable aud illogical source NJ unncccs.
say taxation, ought to be- at once revised
and amended. These laws, ~ their pri.
mary plan and effect, raise the price 10
consumers Of I'll articles imported and sub
jet 10 duty, by precisely the sum paid for
duties. Thus the amount OF duty meas.
mcs the tax paid by those vho purchase
for use these imported articles. Many
Of these things, however, are raised
and manufactured In our own country,
anil the duties now levied upon foreign
goods and products are called protection
Ia these home manufacturers, because
they pndcrit possible for those Of our
people who are manufacturers 10 make
these taxed articles md scll them for q
price equal b. that demanded Tor the Inn
ported goods that have paid custom duty.
- Il happens that while comparative